Increased production and lower costs during the second quarter ensured robust cash flows from operations at $36.6 million, including hedging gains of $6.2 million. The company pegs capital expenditure at $216 million over the next 12 months, with $200 million likely to be invested in Glacier.
The company reported second-quarter 2011 production of 23,719 boe per day, increasing 22% following the completion of the phase III development program at Glacier. Management expects phase IV development work underway at Glacier to drive production growth of 24% over the next year. Operating expenses for the quarter declined 17%.The company has reduced its overall debt by 64% to $103 million during the past six months. Analysts surveyed by Bloomberg expect the stock to have 99% upside over the next one year. Of analysts covering the stock, 67% recommend a buy on it.